Article

How digital is changing car sales

Disruption in the automotive industry

The current automotive retail and distribution model has remained largely unchanged since the 1980s. This has been poor for both consumers, and manufacturers. For consumers, buying a car can be a slow and fragmented process with lengthy paperwork involved. For manufacturers, multiple stakeholders contributing to the current auto value chain erodes margins and results in a disjointed approach to selling. This has led to a growing disconnect in the buy-seller relationship.

The car ownership cycle

How does this affect OEMs?

Competition for consumer attention is intensifying, with new entrants threatening the sales and distribution status quo. Digital disruption has caused car consumers’ behaviour to evolve, and emphasised the shortcomings of the current business model’s ability to fulfil these changing wants and needs.

In this report, we look at the evolution of the automotive retail and distribution model, and offer innovative solutions for OEMs to differentiate themselves and remain competitive.

From reinventing the offline experience or offering a dedicated e-commerce platform integrating finance options, through to creating an omnichannel service for consumers.

The past, present and future of automotive sales

What are the next steps for OEMs?

Updating and improving a sales process that has not changed for decades poses a unique challenge, but it is one that we believe can be met by ambitious OEMs.

This report has conducted analysis on 38 OEMs to understand where they are in the evolution of the industry. We assess the characteristics of digital leaders, and how to move towards a best practise business model.

This report also identifies the barriers OEMs need to overcome to achieve this status, and what the next steps are to transform their business.

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